Jones Group reports stronger sales in Q3
The Jones Group Inc reported results for the third quarter ended October 1, 2011. Revenues for the third quarter of 2011 were $1,044 million, as compared with $1,022 million for the third quarter of 2010.
The Company reported adjusted earnings per share of $0.48 for the third quarter of 2011, as compared with adjusted earnings per share of $0.54 in the same period last year. The results for the current year quarter include charges related to balances denominated in foreign currencies of approximately $6 million ($4 million after tax), or $0.04 per share, whereas in the prior year period such amounts were not material.
The results for the current year quarter also include the favorable impact of a tax law change in the United Kingdom of approximately $4 million after tax, or $0.05 per share. Results for both periods exclude the impact of acquisition-related charges, severance, planned Company-operated retail store closure costs, restructuring activities and certain other charges.
As reported under generally accepted accounting principles (GAAP), the Company reported earnings per share of $0.49 for the third quarter of 2011, as compared with earnings per share of $0.34 for the same period last year. The 2011 third quarter results include a reduction of the acquisition consideration liabilities associated with the Stuart Weitzman and Robert Rodriguez businesses of $15 million ($10 million after tax), partially offset by other net costs and charges of approximately $12 million ($8 million after tax), consisting of acquisition and business development costs, restructuring and other costs.
Results in the prior year third quarter include costs and charges of approximately $11 million ($7 million after tax) related to the acquisitions of the Stuart Weitzman and Robert Rodriguez businesses, an intangible asset impairment of approximately $3 million ($2 million after tax) in the Stuart Weitzman business and $15 million ($10 million after tax) of other restructuring, strategic review costs and certain other charges.
Wesley R. Card, The Jones Group Chief Executive Officer, stated: "Our performance for the third quarter is a reflection of our focus on controlling costs and inventory. Despite a promotional retail environment, we achieved results that were in line with our expectations."
The following notable events have recently occurred:
• repurchased approximately 5.03 million shares of common stock for $50 million;
• launched BBrian Atwood in major department stores, such as Saks Fifth Avenue and Neiman Marcus, and boutiques nationwide; and
• entered into an exclusive, worldwide license agreement with Marchon Eyewear, Inc. for the creation, production, marketing and global distribution of ophthalmic eyewear frames and prescription-ready sunglasses under the Nine West brand.
Cash provided by operations during the first nine months of 2011 was $6 million, compared with cash used in operations of $71 million in the comparable period last year. The current year results reflect lower working capital utilization partially offset by lower earnings. At October 1, 2011, the Company had $55 million outstanding under its $650 million of committed revolving credit facilities, which it subsequently repaid.